$Aramark(ARMK-W)$'s (ARMK) fiscal Q2 organic revenue exceeded estimates, helping drive management to target the upper end of its annual organic revenue growth guidance range, while year-to-date new business wins totaled $1 billion as forward key performance indicators remain strong, Morgan Stanley said Wednesday.

Positive key metrics like a 98% retention rate and accelerating new wins support ongoing strong performance. Aramark's year-to-date gross new wins compare with $1.6 billion for all of fiscal 2025, putting the company on track for another record year of wins.

Aramark's recent hyperscaler win is now the largest contract in its portfolio, at "well over" $100 million normalized annual run rate per location under contract, and should ultimately generate several hundred million dollars over the contract duration, the brokerage added.

The firm sees potential upside from the World Cup per-cap spend and views the months into September as key for new education sector wins, backing management's belief of 2026 being a very strong year for new business, according to the note.

Morgan Stanley reiterated its equal weight rating on Aramark and raised the price target to $50 from $45.

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